INTRODUCTION
“What is globalization?” and “what are its negative effects” are the questions which we should begin with. There are numerous definitions pertaining to globalization; Merriam Webster’s dictionary defines globalization as “the act or process of globalizing: the state of being globalized; especially: the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets.”(Merriam Webster) .The Oxford dictionary defines it as, “The process by which businesses or other organizations develop international influence or start operating on an international scale.”
According to Magstadt (2003), globalization is “the process by which values, attitudes, …show more content…
Inequality is about the disparities in levels of living—for example, how much more is held by rich people than poor people. Measures of poverty and inequality are typically based on household consumption expenditure or income normalized for differences in household size and the cost-of-living.
For the purpose of this paper I will look into how economic globalization has contributed to global poverty and inequality among the people of the world. Globalization promises to give everyone access to markets, capital and technology, and to foster good governance but these have not been fully …show more content…
Globalization of finance has also undermined the capacity of states to determine their own future. In addition, MNCs in these states operate outside the legal control of national governments, thus posing a challenge to a state’s sovereignty.
Over the least few decades, the spread of free-market policy regimes have given rise to an apparent increase in inequality. While labour markets become more competitive and skill premiums have fetched higher returns, governments have been withdrawing their protection they once had for their citizens to sheltering them from the harsher effects of market economies.
Dictatorships in Southern Europe allowed workers to leave so as to reduce domestic unemployment, as these economies were growing really slowly as compared to member states of the European Common Market. These migrant workers sent part of their wages as remittances that were used by states facing persistent trade deficits to import oil and goods. However, global developments in the 1970s like the 1974 OPEC oil embargo created problems for those states that relied on migration for their political legitimacy and economic development. What followed was the recession in Western Europe that forced states in this region to expel migrant
“What is globalization?” and “what are its negative effects” are the questions which we should begin with. There are numerous definitions pertaining to globalization; Merriam Webster’s dictionary defines globalization as “the act or process of globalizing: the state of being globalized; especially: the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets.”(Merriam Webster) .The Oxford dictionary defines it as, “The process by which businesses or other organizations develop international influence or start operating on an international scale.”
According to Magstadt (2003), globalization is “the process by which values, attitudes, …show more content…
Inequality is about the disparities in levels of living—for example, how much more is held by rich people than poor people. Measures of poverty and inequality are typically based on household consumption expenditure or income normalized for differences in household size and the cost-of-living.
For the purpose of this paper I will look into how economic globalization has contributed to global poverty and inequality among the people of the world. Globalization promises to give everyone access to markets, capital and technology, and to foster good governance but these have not been fully …show more content…
Globalization of finance has also undermined the capacity of states to determine their own future. In addition, MNCs in these states operate outside the legal control of national governments, thus posing a challenge to a state’s sovereignty.
Over the least few decades, the spread of free-market policy regimes have given rise to an apparent increase in inequality. While labour markets become more competitive and skill premiums have fetched higher returns, governments have been withdrawing their protection they once had for their citizens to sheltering them from the harsher effects of market economies.
Dictatorships in Southern Europe allowed workers to leave so as to reduce domestic unemployment, as these economies were growing really slowly as compared to member states of the European Common Market. These migrant workers sent part of their wages as remittances that were used by states facing persistent trade deficits to import oil and goods. However, global developments in the 1970s like the 1974 OPEC oil embargo created problems for those states that relied on migration for their political legitimacy and economic development. What followed was the recession in Western Europe that forced states in this region to expel migrant